Employee Provident Fund (EPF) is one of the popular retirement funds among salaried individuals. The main aim of the government is to provide security to the employee during the old age.
Many individuals are not aware that withdrawal of EPF is supposedly a corpus amount aggregated for retirement and attracts tax liability. And the Tax Deducted At Source (TDS) will be deducted at the time of payment.
Also a member who is applying must quote PAN in Form No 15G / 15H and in Form No. 19.
Here are a few cases, when you have not to pay tax on EPF:
Tax Deducted at Source
TDS is not applicable when individuals transfer Provident Fund from one account to another Provident Fund Account.
Due to illness
If there is termination of service due to ill health of member/discontinuation of Business by employer/completion of project/other cause beyond the control of member, in such cases TDS is not applicable.
After 5 Years
If employee withdraws PF after a period of five years.
Amount less than Rs 50,000
If PF payment is less than Rs 50,000 but the member has rendered service of less than 5 years.
Submits form 15G/15H
If employee withdraws amount more than or equal to Rs 50,000 with service less than 5 years but submits Form 15G/15H along with their PAN.
In all other cases, a TDS may be applicable on EPF amounts.